>> japan. >> reporter: we saved him right there. but we did ask about that abercrombie bag. >> china. >> reporter: made in china. so, you came all this way from germany -- >> to buy stuff from china. >> reporter: to buy stuff from china. that's an understatement. because 98% of the clothes bought in this country are made overseas. china, by far, the leader. leaving just 2% made here in america. you may remember when "world news" recently traveled to china, to the town that makes one-third of the world's socks. chen gulfan and her husband showed me a picture of their son. he is living back with his grandparents. they see him once a year, so that they can work in the factory, making $14 a day, $270 a month. clothing workers here, $88 a day, $1,760 a month. how could we ever compete with those socks and other items? would we want to? >> i'm not sure it's feasible to compete with china. what we are good at is the production of advanced goods. >> reporter: when it comes to clothing, he means labs like this one at the north face in califo